The first step in performance attribution of a portfolio:
A) seeks to determine before the fact why success or failure occurred.
B) is typically a bottom-up approach.
C) does not require the identification of a benchmark of performance.
D) is often to begin with the policy statement that guides the management of a portfolio.

Question

Quizplus · Accepted Answer

The first step in performance attribution of a portfolio often involves beginning with the policy statement that guides the management of the portfolio. This statement sets the objectives, constraints, and guidelines for how the portfolio is managed, serving as a foundation for evaluating performance.

The First Step in Performance Attribution of a Portfolio